________ measure the financing supplied by the company's owners against that supplied by its creditors and serve as a gauge of the depth of a company's debt.
A)Operating ratios
B)Profitability ratios
C)Leverage ratios
D)Liquidity ratios

Question

Quizplus · Accepted Answer

Leverage ratios measure the extent to which a company is using debt financing as opposed to equity financing. They compare the amount of financing supplied by the company's owners (equity) to that supplied by its creditors (debt) and give an indication of the level of debt a company has taken on.

________ Measure the Financing Supplied by the Company's Owners Against